All Forum Posts by: Angel Moreno

I’m learning how to wholesell and have found a property I’m likely to get under contract. After it’s under contract what should be the next step? How can I find a lawyer that can do a double closing?

2 Votes

Chicago, Illinois

I currently bought my first duplex I am house hacking. I have very little expenses, no debt, and make a decent income. I plan to save money to be able to do my first flip in 2023. Who are the best lenders in the Chicagoland area that work with house flippers and about how much cash will I have to save to be able to qualify for a loan on a fixer upper?

Thank you in advance!

0 Votes

Chicago, Illinois

Quote from @Heather Dickison:

I'll send you message with the address. We are renting for $900 for one bedrooms and $950 for two bedrooms. Again, that is renovated with new appliances, floor, paint, doors, etc.

For the previous owner, one tenant was over $10,000 behind in rent, another $4000, and others lower amounts. Only one tenant was current. I imagine that's why we got it for a steal.

Wow you really did get a steal congrats! I hope I can find a deal like that next year when I’m looking for my 4-plex.

I would imagine you could raise the rents even more considering the market were in? I had a small 2 bedroom house rented out for $1000 but when I decided to sell it my tennnants couldn’t find another similar place for the same price. My realtor told me 2 bedroom could rent anywhere from $1100 - $1300 currently.

0 Votes

Quote from @Brandon Plombon:

I would need more information on this deal to decide if this was a good deal or not but everyone has their own investing philosophy and what works for me might not work for you. If you are putting 20% down for a cash flow of $2,400 on an initial $40,000 investment, the return is a 6% return. Is that a good return? For me I'd pass as it doesn't hit my criteria but for all I know it could be the best deal in the market. As far as the taxes go it does seem high to me but I am not familiar with the market and being that close to Chicago - it probably is. If you share more info I'd be happy to take a further look but those are my 2 cents with limited info.

Hi Brandon, the numbers I got were based on $195k purchase price with 5% down FHA loan using 5.25 interest rate which is what I been quoted for from my lender. 5% for vacancy and repairs each and 10% for cap ex. I will be self managing.

0 Votes

Quote from @Chris Varsek:

Hey Angel - I'm an investor in Zion, and one of the top local realtors (I live in Beach Park, 3 minutes away). Make sure you account for any tax jump, and the figure out what your doing with the water/garbage costs (as owner, those will be billed to you). Also, what rents are you using. Many local landlords are well below rent b/c they haven't tracked what's happening here.

Zion is still appreciating b/c of the push from the close WI market, and duplexes are really hard to find in NE Lake county (at least at reasonable valuations).

One missed issue will cause that cash flow to disappear. However it may be a good opportunity to get in the game and ride inflation and appreciation.

- Varsek

Hi Chris, my realtor told me I could probably rent out both units for $1300 . They are 1100 square foot 2 bedroom units with large finished basement.

$200 per door is not really that exciting but I figured Zion will be appreciating in the next decade due to what you are saying plus people migrating to lake county from cook county.

I already kept into account the water and sewer expense as well as tax expenses. I am planing to see a lawyer if I make the purchase to try and lower the property taxes tho as $8500 seems high when comparing to similar duplexes in the area.

Thank you for your response!

0 Votes

Quote from @Heather Dickison:

I bought a 6 unit in January in Zion, IL for $232,000. Rents were very under market and as tenants are moving out, we are flipping units and raising rents on the renovated units. That being said, based on what we are making, I do not think $100 per door would be worth it in this area.

Do you mind sharing the address of the property? And how much have you raised your rents for?

I’m hoping to make this deal happen as just a first step. Going to be looking for a 4 unit next year.

1 Vote

Its going to be my first rental property and seems like in this market all the multi family's go contingent within a week for the asking price or above in my area. I went to go look at a side by side duplex in Zion, Illinois and ran the numbers after all my expenses I should cash flow a little over $200. The asking price is $200k but the taxes are close to $8500 which seems like a lot. What do you guys think?

3 Votes

I want to purchase a triplex for 90k that needs about 50k of work. How can I find a contractor and lender that can help me use an FHA 203 loan. I'm in the Chicagoland area.

0 Votes

@Austin Fogt what do you mean by check his registration?

0 Votes

@Jack Orthman I believe the first unit would rent for $950. Second unit for $900. Third unit is a studio and is currently rented out for $450. Has a large 2 story garage that current owner rents out to a guy that works on cars for $150 a month currently . So I believe I can bring in $2400 gross rental income.

0 Votes

All Forum Posts by: Angel Moreno

Angel Moreno has started 17 posts and replied 34 times.

Post: How can I find a lawyer that can double close or assign contract?

Post: What are the best lenders in the Chicagoland area?

Post: Is buying a duplex that cashflows $100 per door worth it?

Post: Is buying a duplex that cashflows $100 per door worth it?

Post: Is buying a duplex that cashflows $100 per door worth it?

Post: Is buying a duplex that cashflows $100 per door worth it?

Post: Is buying a duplex that cashflows $100 per door worth it?

Post: How can I find contractors that are familiar with an FHA 203

Post: Does this sound like a good deal(Off market triplex) ?

Post: Does this sound like a good deal(Off market triplex) ?